(harkhand Act, 66,2011]. ~ -_ The Jharkhand Co-operative Societies es (Amendmend) Act, 201L - = AN ACT TO AMEND THE JHARKHAND COOPERATIVE SO: TIES ACT, 1935 (ADDOPTED)(ACT VI OF 1935) Be it enacted by Legislative Assembly in the Sixty two years _of the Republic of India as follows: - Short tide, extent and commencement :- G) This Act may be called the Jharkhand C (Amendment) Act, 2011, Gi) It shall extend to the whole of the State of Jharkhand. Gii) It shall come into force at once. Addition after section 2(5) of the Jharkhand Co-operative Societies Act, 1935 (Adopted) 1- ‘operative Societies rhe following shall be added after section 2(3) of the Jharkhand Co-operative Societies Act, 1935 (Adopted) uuless the context otherwise requires;namely (k) " Affiliating Society” Means a registered Society of which another registered Society is a member and an “affiliated society” means asiFiay 27 ome Lepistered sacieny which is a averber of an afinia 1) “Apes Sociery® mean ing, society. £1) A societies whose ties oh openmen covers he whale of Ivakhand and has any other Co-openitive Society and if the bye-taws so provide individuals as ies mimbers, or Hi) Any other co-operative tederation havi of operation a wld of dharkhand and which las heen declared as Apex society By the Regntiar of Co-operative Secret m) "Capital to risk weighted a: Ratio” The eaptial Adequacy noms aipulated by the hatoual hank foe dme to dime {n) “Central Co-operative Bank" means a Cenual Society engaged in the business of bankin, (oy "Central Soci (i) A Co-operative Socieny which has any other Co-operative Society and, if the Dyetaws so provide . individuals as its members, provided Mar n does met come under the cacgory of a primary osicty, ait Apex Society ora State level soo ty, or fis declared as 4 central society by the Registrar of Co-operative Societies; 4p) “Chartered Accountant” means a member’ of Institue of Chartered Accountants of India within the meaning of the Chartered Accoumants AC(, 1949 (38 of 1949), Gq) “National Bank” means the National Bank for Agriculume and Rural Development established under section 3 of National Bank for Agriculture and Rural Development Act, 1981 (61 of 1981), {) “Reserve Bank” means a Reserve Back of ladia Constiuted under section 3 of the Reserve Bank of India Act, 1934 (2 of 1934), (s) "Shon Term Co-operative Credit Suructure Society” means and includes the State Co-operative Bank, Cental Co-operative Gank and pimary Agriculture Credit Societies, by whatever name they may be called; (2) “State Co-operative Bank" means an Apex Society engaged in the business of banding 3. Insertion of a new chapter afier chapter VI B of the Jharkhand Co-operative (ii) A Co-operative Society wh Societies Act, 1934 (Adopted)- The following new chapter shall be inserted after chapter VIB of this Act, namely = Chapter - VIC (For the special provision applicable (@ short term co-pperation credit structure) 4. Insertion of news sections Wamely, 44. AT, 44AU and 44AV afier section 44S of the dharkte Co operative Societies Act, 1935 (Adopted) - The following secon A, A4AU) and 44AV shall be insected 4445 in the Jharkhand Co-Sees ead Orme) was 27 SATE, 2011 Act, 1935 (Adopted) namely ~ Provision to this chapter to apply to short term Co-operative Credit Structure Societies-The provision contained in this chapter shall apply: to short terms Co-operative credit structure societies, operative Soci agate ASAU- Overriding effect of chapter VIC- Not standing anything contrary or inconsistent with any provision contained in any other Act or Rules framed there under or bye-laws of any registered society or ofders issued there under the provision of this chaprer shall have overriding, effect. v (1) 1a) Slemershin sahts o denestersbgrcowers: Every person OF group holding a minimum deposit of rupees one thousand for a continuots period of minimum two years o sich other amount or tine as may be prescribed in the bye Jaws of 3 primary agricultural credit society shall become a member of the society by subsctibing the minimum share capital specified in the bye-laws and shall have Tall membership and votibg aight. © ~~ © () A group borrower shall become a member. of 4 primary agricultural credit society by subscribing the minimum share capitalspiecified in the bye-laws and shall have full voting oghts. (©) Every group depositor or group borrower admitted as a member shall be entitled to vote through one delegate nominated by the gsoup 2) Autonomy to STCCS: A Short Term Couperasive Credit Suucture Society shall Nave Giecdom to decide its financial and infernal adutinistrative maders, especially = G) Interest rate on deposit and loans, (i) Borrowing, and investments, Gil) Loan poheies and individeal loan decisions, conformity with de RBI guideline , Gy) Personnel policy, staffing, recruitment, posting and compensation to staff, and . () imeraat controt system, appoiulment of auditors and fees for the audit G) Restrictions om eovernment equity: The State Government's subscription to the share capital of any Short Term Cooperative Credit Stmcture Society shat not exceed twenty five percent of the total paid-up share capital of such society. Provided cat the Stats Government of such society have option 10 further reduce the State jovérnment equity and the society shall not be prevented from doing so by the State Goverumenteon), wPtare 27 (2) Gt) Gayerment ammtinees “There shall te only one nommoe of the Government athe nis ietee OF the Shite Connperative Bank nd Coanat Cucopertiie Ranks ouly a the Goveimucat ha. saduetibe is hate capital (0) Tiere shall be ne Government nomined in the managyms consmitee of Hoy ayricullise enatit society arespestive af whether the Gov has Subsen bad to the share 8) ete I of such society oF not J feeedous to af on: A short Tenn Co-operative Credit Structure Society say IT it so chooses, become a co-operate and get repistered under Jharkhand Self Supporting Co-operative Society Act, 1996, alter fulfilling the prescribed requirements. (b) A co-operative segistered under Jharkhand Self Supporting, Co-operative Societies Act, 1996 may become a member of an affiliating society reypistered under this Act (©) A Short Term Co-operative Credit Suucture socieyy may become a member of an affiliating society of its choice or leave the membership of sack society provided that before de-aGfiliation the saciety shall discharge’ its Ainancial ability, if any, to the society fiom which itis de- affitiating, nz A short Term Co-operative Credit Suucture shall have the freedom of entry and exit at any ter and there shall be fo mandavor testtictions of geographical boundaries for the conduct of its operations. roa) Freedom of iavestment: A Short Term Co-operative Credit Smucts Society may, subject to the guidelines of the Reserve Bank, if any, invest or deposit its funds in any bank or financial institution regulated by the Reserve Bank and nor necessarily in the federal society te which it is affiliated. e eedom in chosing fina tion: A Short Term Co-operative Credit Steweture ‘ociety may obtain loans from any bank or Reserve Bank regulated Financial institution and refinance fom National Bank” or any other refinancing agency directly or through any Reserve Bank’regulated financial institution af its noice an not necessarily fom the filiating, society to which itis affitiated, (9) Fayment of dividend: A primary apncultue in accordance with the guide! the National Bank al credit society may pay dividend eS framed by the Registrar in consultation withBRS Tue GRTEN), He 27 eR, 2011 13 (40) Removal of compulsion from makdnx contribetion: The Government oF the Registrar shall have no powers to direct any Short Term Co-operative Credit Stucture Society to contribute to any fund other than Mose required for improving (65 net worth or own funds, (1D) Dis-quatifications for occupying a post om the managing comm: No person shall be elected, nominated, co-opted or allowed to continue as a member of the commites of a Shott Tenn Co-operative Credit Stra sociny. ithe (is.a person who represents a society other than a primary agriculture credit society on the managing; commitce of 3 Central Co-operative Bank or the State Co-operative bank, if such society which te presents as comited 4 detwalt towards the payments of such bank for more than mine days on intimation of such defaults by the Chet Executive ofthe hank concemed, (i) 18 person who committed & default toward the pabment 16 a primary noviciiane credit society or sepresents a primary agpicultwe credit sicity ou the managing committee of a central cooperative bank or the State Cooperative Bank." such satiety which he represents has commited 5 defaule towards the payment of sich bank for more than one Year on iniimation oC such defaults by the Chiet Executive ofthe bank concerted: (is) 15 4 person, who represents a society whose managing commitice superseded or has ceased to be a meraber of the managing. Commitee of his own society (82) G@) Superseasion: The supersession of the managing commie of State Co- ‘operative Bank or Central Co-operative Hank under section 41 of this Act ‘shall be done by the Registrar in consultation with the Reserve Bank. (&) The supersession of the managing commisiee of a primary atricultural = credit society under section 44 of tins Act shall be done by the Reyistrar ‘only under the following.condition ‘= UF society incurs tosses for three consecutive years, of Gi) AF serious financial inegulariGies or funds have been identified, or (ui) If there are judicial directives to dus effect, or Gv) If there is lack of quorum for tires corsecutive meetings, oF (©) If more than half of the members of the Managing Committee have resigned and communicated (o the Registrar (13) (@) Hlection: The election to he managing commune of a Short Test Co-OEE SSO operative Credit Structure society shall be conducte before the expiry ef te term of the existing manning comme and i case of supersession of the managing committee of such suciety, the election shall be conducted with two mont from the date of suiversession Provided that in circumstance beyond eon I, the Stare Gow allow holding of such elections within a presios! Wor exceeding; six mioadtes Eo. the date of supersession. | () A member of the managing committee of 2 primary agricultural credit society which has been superseded under the conditions snentioned in sub- clause G) and (ii) of clause (b) of sub section (12) of Section 4AN shall nor be eligible to be re-elected, reappointed, re-nominated or re-co-opted as member of the committer for 9 period of five consecutive years font the dal: | of supersession = in (14) (@) Registration of bye- laws: The bye law’ or any amendment (0 the bye laws of society under the Stior\ Term Co-operative Credie Strupauie Society . shall be registered by the Registrar withisi thirty days from the date of seceipt of the application. (®) Ifthe Registar is satisfied shar the proposed bye laws or the amendatents to the bye laws are contrary io the provisions of the Act aud the Rules made there under, he shall reject dhe same duly recording his reasons shiereon with thirty days fiom the date of the receipt of the application. | (05) Prudential worms and CRAR: The pridential norms including Capita! Adequacy tw Risk Weiphied Assets Hatio for primary, ageiculuste credit i fl society shall be prescribed by the Registrar in consultation with the National | Bank. (16) (a)Criters for chief execut ber of aging commit ‘The members of the managing comminee or chiet executive officer of the State Co-operative Bank and central cooperative bank shall fulfill the criteris stipulated by the Reserve Bank for the Gime being in force (b) A member of the orsnasing committee of the State Co-operative Bank or a ential co-operative bam oF @ person Holding the post of Chief Executive Officer wha does vot Gull the fie and proper criteria stipulated by the Reserve Bank shall be seated as invlierble for suchsNeave “Tare Grenieed, often 27 sired, 2011 ~ holding the post. he shall be removed by the Registar or the appointing authority, as the case may be, forthwith on being se advised by the Reserve Bank or Nauonal Bank (17) (@)Professionals on the managing commitice: There shall be at least such number of professionals having special knowledge or experience in such fields as may be stipulated by the Reserve Hank in the managing committee of the State Co-nperative Bank and central cooperative banks and im case sach number of elected directors do not, in the opinion of Reseeve Bank or National Bank, possess special knowledge ox experience in such fields as may be stipulated by the 1eserve Bank . the managing committee of the State Co- operative Bank or the Central Co-operative Bank, as the case may be , shat co-opt such number of professionals with full voting tights ireespective of (@ the Minit on the number of members of the managing comminee under this Act or rules framed there under or its bye laws, . Gi) Whether such professional is a member of the Society of not. - _ (b) If.any person who, in the opinion of Reserve Bank or the National Bank, thas been co-opted as a member of the managing committee under clause (a) of su- section (17) of section 44 AV without having requisite knowledge or experience as stipulated by the Reserve Bank, be shall, om being so advised by the Reserve Bank or the National Bank, be removed from the office by th+ Registrar after giving him a reasonable opportunity af being heard. (18) Audit: The State Co-operative Bank and a Central Co-operative Bank shat cause audit and certification of its accounts by a Chartered Accountant selected by it from the panel approved by the National Dank (G9) Special audit: The Registrar shall get conducted a special audit of the St Cooperative Bank and central cooperative bank on the request of the Reserve Bank in the manner and form stipulated by the Reserve Bank and shit endorse a Copy of the report of such special audit to the Reserve Sank and National Bank within the time stipulated by the Reserve Bank. (20) Prohibition on use of the word “bank”: No primary agriculture eres. society or its federation or association shall, except those permitted £0 act 25 bank under the Banking Regulation Act 1949(Central Act 10 of 1949), registered with the word “Bank’ “Banker” “Banking” or any other derivative ot the word *Bank’ in its registered mame or shall yse the same as a part of is name:16 sitaes sole GARTER), WAN 27 STH, 76 Provided that where any primary agriculural credit society oF ts Yede/ai0 9) association, except those which are peammted i act as 3 bank under the Banking Regulation Act. 1949 Central Act 10 of 1949 ), has been s+) using the same as part of its name before the commencement of the Jharisl:and Co-operative Societies (Amendment) Act 2010 with the word “Bank! or any of its derivatives in its registered name, it shall, within duee montis Siam the Sate of such commencement, change 3 ausie so as t@ wemoved the word “bank! or its derivative, ifany, Som its name, Provided further that where any such society fails to comply with the above provisions withia the period specified herein, the Registrar shall compulsorily amends its name 3s per provisions of dhe this Act (21) Abolition of cadce yystem: Thete shall not be any cadre system in society under Short Term Co-operative Credit Structure and the cadre system shall be abolished with effect from a date (o be notified by the State Goverment (22) Implementation of rézulatory prescriptions: (a) The Regiswar shall easure ‘the_implementation of vegulatory presctiption given by the Resorve Rank, + = including recommendation {Gr bipersession pf te managing committee and ~ winding up of the Stite Co-operative Banke and Central Co-operative Banks, within ome month from the date of receipt of the advice from the Reserve Bank ea : (b) The Registrar shall, on being advised by the Reserve Bank or he National Bank for supersession or Winding up, ensure that due Admiuistrator or the {Liquidator as the éase nay 'b¢_¥s appointed withiv ove moath fiom the date of receipt of the advice from the Resarve Bank .~ Bank does not fulfill eligi exited ‘specified. by the Reserve Bank, the Registrar shall forthwith direct compliance of the orders of the Reserve Bank _ BF ie Naito Rotts many boot Avid ty ihe sory been comOpted asa meinber of cha tlandigini operative Bank or a central*roopesative bank without Having ‘abe requisite special knowledge of expériente-in such fields as wiay be stipulated by thesiaes sore Gram), wher 27 sere, 2011 Ww Reserve Dank, the Registar shall, on being advised by due Reserve Bunk ov the National Bank, forthwith direct compliance of the order of the Reserve Bank or, the National Bank as the case may be. about the removal of the person from the post of co-opted director 23) Exemptions. No hort Term Co-operative Credit Structure Society shati be exempted under sub gection (2) of Section 62 of this Act in any mansier fram the application of the provision of this chapter without prior consultation with the Reserve (Rank or the National Bank (24) Repeal and savings @) The Jharkhan ‘Co-operative Societies (amendment) Ordinance, 2010 harkhand ordinance no 1, 2011) is herby repeated. Gi) Savings Notwithstanding, the repeat of bove ordinance, order issued vender the repeated ocdinance or any other action taken under the repealed Act, before the consmencement of present Act, 30 far a8 tis not inconsistent widh the provisions of the Act, be deemed to have been duly issued and made under che corresponding provisions of these Act. > sree woaus d aide A sia stterecra, ree d afta—ae AR wert fay (faara) fae, arcaes t Srite, Gas Uae qrnaa, Ul gar varied wt xfea, arate NS (SRMWTEM) 609--750+300